Have Insiders Sold Microsoft Shares Recently?

We wouldn't blame Microsoft Corporation (NASDAQ:MSFT) shareholders if they were a little worried about the fact that Judson Althoff, the Executive VP & CEO of Commercial Business recently netted about US$4.9m selling shares at an average price of US$488. That sale reduced their total holding by 18% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At Microsoft

In the last twelve months, the biggest single sale by an insider was when the President & Vice Chairman, Bradford Smith, sold US$20m worth of shares at a price of US$519 per share. So we know that an insider sold shares at around the present share price of US$504. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

All up, insiders sold more shares in Microsoft than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of Microsoft

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Microsoft insiders own about US$1.2b worth of shares (which is 0.03% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Microsoft Tell Us?

Insiders haven't bought Microsoft stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Microsoft is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Microsoft. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Microsoft.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.